A. This section shall govern the methods of financing distribution system improvements, renewals and extensions, and specifying standards for certain sizes and types of materials for use by and in the city water system.

B. All new distribution system mains shall be constructed of materials and installed in accordance with the city standard specifications conforming to the appropriate American Water Works Association standard as determined by the utilities superintendent.

C. The term “lateral line” or “lateral” is used in this chapter to designate a distribution system pipeline which includes fire hydrants and service connections to adjacent property. The standard minimum size of lateral lines shall be six inches in diameter unless otherwise determined by the utilities superintendent. The location of all new lines shall be determined by the utilities superintendent.

D. All new lateral lines shall be paid for by local improvement district assessments or cash payments by customers desiring water service. Installation of new laterals shall include all appurtenances required for a complete installation, such as valves, fittings, fire hydrants and lateral line extensions to grid the system and thereby eliminate dead ends.

E. All system improvement lines shall be paid from water system funds as hereinafter set forth; provided however, the financial participation of the water system in any local improvement district shall be determined exclusively by the terms of the ordinances establishing the local improvement district. The term “system improvement line” as used in this chapter shall designate those feeder lines constructed for the purpose of improving the distribution system as a whole or in part as determined by the utilities superintendent.

F. To the property benefited there shall be charged the cost of installing a water line including fire hydrants and appurtenances. If the water line is a system improvement line, the water system shall bear all costs in excess of the original design that is adequate for property benefited based on the water system’s anticipated use of the property at the time of the installation. Industrial developments which require large quantities of water or multiple sources shall be required to bear the cost of any necessary expansion or modification of water lines to service their needs.

G. Renewals of lateral and feeder lines with the same size pipe shall be done by and at the expense of the water system, in the discretion of the utilities superintendent, subject to funding availability. The term “renewals” as used in this chapter shall designate the replacement of lines previously installed which have deteriorated to a condition which requires excessive maintenance or otherwise does not provide satisfactory service.

H. It is recognized that lateral mains of a size less than the standard minimum six-inch diameter have previously been installed or annexed to the water system. When such an undersized lateral requires renewal or replacement, it shall be installed in accordance with the standards set forth in this chapter. Payment for renewal or replacement of such undersized lines shall be made as follows: